Monday, 10 August 2015

How do you read the results of the elections
for the Turkish Cypriot leader held in April? What does the overwhelming
support for Mr. Mustafa Akinci mean?

Schoepff: It shows that the Turkish Cypriots were
frustrated about the developments they were faced with. Mr. Mustafa Akinci’s
election is a clear ‘yes’ for a devoted, strong leader who would work for
solution. I have met Mr. Akinci and you can immediately feel his vast
experience, solution-oriented approach and determination. His election has
created new hope and new enthusiasm on both sides of the green line. President
Anastasiades has personally told me that the real change came with Akinci. And
I think that way too. For this, everyone has to thank him. And of course, I also
congratulate the voters in northern Cyprus for having demonstrated a clear
preference for a settlement and becoming an inseparable part of Europe.

Is Akinci’s presence enough to render this
process different from the previous ones that all failed?

Schoepff:
There
is a big difference in the process now. By electing Akinci, Turkish Cypriots
clearly said ‘we want a different Cyprus.’ And I think the feeling in the south
is similar. There is a growing sentiment among both Turkish Cypriots and Greek
Cypriots that they want a ‘Cyprus nation’ instead of being subordinates of
Greece and Turkey. The ‘Cypriot’ identity has come to the forefront. The
conditions have never been better and will never be better again. I believe the
two Leaders are aware of this fact. I like both leaders very much. They are
both very practical and both have the same vision for building a united Cyprus
in Europe. They belong to the same generation, they are both from Limassol,
they understand each other and who have both proven in the past that they
pursue the same goal. My impression is that there is a big harmony between
them. A united federal Cyprus would be a trade and business gateway between
Europe and the Middle East and serve as a hub of stability in the whole Middle
East and Arab region, which is inflicted by instability and challenges. The
leaders see this. Cyprus is on the right path.

Do you think you will be the Ambassador who
witnesses solution in Cyprus?

Schoepff: I am extremely hopeful that I will be. The process is moving forward
very well and the situation has completely changed within months. We are
hearing and seeing things that would be unimaginable two months ago.

What is Germany’s stance regarding and role in
the negotiations process?

Schoepff:Germany
is following the negotiations closely. Chancellor Merkel is in close contact
with Anastasiades. Important German politicians including Foreign Minister
Steinmeier will soon be visiting Cyprus and meeting with both leaders. Germany
welcomes the resumption of the negotiations wholeheartedly and we wish the two
Leaders the courage and wisdom necessary to maintain the current momentum and
to conclude them soon. Since the new Cyprus will be a full member of the
European Union it goes without saying that the settlement needs to be in line
with the European Acquis. The EU and Germany stand ready to support the process
if required. But the process is up to the two communities. A just and viable
settlement can only be achieved by the two community Leaders.

The aim is to achieve important progress by the
end of October or beginning of November and then to have a multilateral meeting
with the participation of guarantors for thornier issues such as guarantees. Do
you think this is a realistic expectation?

Schoepff: This all depends first and foremost on the progress made until then. As
long as the two Leaders feel the sense of urgency – which they do at the moment
– there is no need for timelines. My understanding is that both sides have
agreed that guarantees will be the last issue to be discussed after all other
aspects of a solution have been dealt with and all internal issues have been
tackled. I believe that this is a practical approach. At the end of the day,
this will be up the united Cyprus but I don’t think a united federal Cyprus
would need guarantees. Cyprus, after a solution, should be like any other
normal full-fledged EU member state.

What do you think about the first CBMs?

Schoepff: CBMs are important because they convey a
strong message to the public and contribute to the building of the concept of
co-existence and a joint nation. They make progress visible and tangible for
the citizens of Cyprus and make their daily lives easier. In this way CBMs help
to create a positive atmosphere, bring people together and to prepare the
public for a solution.

Drawing on your experience from German
reunification, what kinds of CBMs should the two sides focus on to bring the
two communities together?

Schoepff: In Germany we
strongly believe in the power of the private sector. I believe a greater
interconnection between the two economies, more joint business projects and
joint business promotion will bring people even closer together. It also helps
to place Cyprus on the map of international investors. My recent trip to
Germany with the two Presidents of the Chambers of Commerce was a big success
in this respect. And this was the
first time we promoted in Germany the whole of Cyprus. We had very good
meetings in Hannover, Munich and Berlin. I believe that it is very important to
develop business and economy sectors.

You have close relations with the Turkish
Cypriot Chamber of Commerce. How are your relations with Turkish Cypriots other
than that? How active are you in the north?

Schoepff: Actually, the more I am here, the more I like the north. I have two
aims here in Cyprus that I will tell you now. One is to set up a bilateral
German-Cyprus chamber of commerce. And the Cyprus leg of it will of course be
bi-communal and include Turkish Cypriots. We are already working with the
Chambers of Commerce on both sides for this. The second is, I want to
strengthen our office in the north, have a stronger presence and to be more
active there.

What do you expect the biggest challenge to be
in terms of the reconciliation of people again drawing from experience?

Schoepff:Germany
knows about what division means. Reunification is a process. To be successful,
it needs time. Decades after the fall of the Berlin wall, we still feel the
difficulties of reunification as well as enjoying its benefits. The
biggest challenge is to create an atmosphere of equality and mutual respect
where nobody feels left behind. People who have reason to believe that their
lives work is not recognized by the new state they live in will soon start to
disengage and refuse to contribute to building a new society. Also, I am very
much in favour of a joint political process in the united Cyprus. Politicians
after a solution should appeal to both communities. Politics should serve as an
instrument of unification rather than separation.

Do you have any indicators as to what the financial
effects/benefits of a settlement in Cyprus would be?

Schoepff: All economic
studies I have seen suggest unanimously that the economic benefits of a
settlement will be enormous. There are three simple reasons for this: First,
while the “frozen conflict situation” may seem relatively stable it still
constitutes a political risk for international investors. Only if Cyprus
succeeds in abolishing this risk factor will she be able to develop her full
potential as a trading and business hub between Europe and the Near and Middle
East. Second, the very small market size of Cyprus would be increased
considerably and the hinterland for European exporters could be vastly
expanded, reaching from Turkey to Egypt. Third, the settlement itself would
directly trigger a number of public investment projects in infrastructure and
administrative capacities. While
these general effects of a settlement are widely known it still remains
difficult to quantify the expected benefits more precisely. Although some
reports have been prepared by academicians or researchers, no real
professionals have ever looked at this issue.In my view, the IMF is the most suitable institution to provide a
macroeconomic framework analysis for the north and for the south. Such an
analysis would greatly help to give us a clearer picture of the compatibility
and the growth potential of the two economies. IMF could make an economic
impact analysis, which would provide us with reliable data on the real benefits
and financial needs of the unification of Cyprus. I believe this is crucially
important at the moment. I believe it would make a great confidence building
measure to commission the IMF with such a study.

Lastly, what can you say about the developments
in Greece?

Schoepff: I don’t want to comment much about this issue but I can say that Europe
will never let Greece go. Cyprus, on the other hand, has been very
results-oriented in managing its financial crisis and has created a very
positive perception. By going ahead with the necessary reforms Cyprus and with
a solid financial policy, now has very solid financial figures and the economy
has gone back to growth.